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Group financial results and cash dividend declaration for the year ended June 2022
RCL FOODS LIMITED
(Incorporated in the Republic of South Africa)
ISIN: ZAE000179438
Share Code: RCL
(“RCL FOODS” or “the Company” or “the Group”)
GROUP FINANCIAL RESULTS AND CASH DIVIDEND DECLARATION FOR THE YEAR
ENDED JUNE 2022
• Revenue up 10.2% to R 34,9 billion
• Earnings before depreciation, amortisation and impairment
(EBITDA) up 7.7% to R 2 595,7 million
• Underlying* EBITDA up 2.0% to R 2 580,3 million
• Headline earnings per share (HEPS) up 9.9% to 118.6 cents
• Earnings per share (EPS) up 2.0% to 114.0 cents
• Total dividend declared 45.0 cents (June 2021: 45.0 cents)
*The underlying view of the results excludes material once-offs
and accounting adjustments. Refer to the “Reconciliation between
unadjusted and underlying results” section provided as part of the
full announcement for further details.
RCL FOODS has achieved a pleasing set of results for the year
ended June 2022, demonstrating resilience in a challenging
operating environment. Key drivers of the result were continued
momentum in Sugar, a return to profitability in Chicken (now
referred to as “Rainbow”) and a solid performance in Vector
Logistics. Commodity input cost increases continue to place
margins under pressure. The result for the prior year was aided by
the inclusion of an additional trading week.
RCL FOODS’ value-added business (consisting of the Groceries,
Baking and Sugar business units) delivered a resilient performance
amidst exceptionally difficult market conditions. Sugar reported
its second highest profit ever, whilst a strong Grocery result
helped offset challenges in Pies and Beverages. In the Baking
business unit, elevated wheat and fuel costs put margins under
pressure.
Rainbow is making good progress with its turnaround strategy.
Despite significant commodity input cost increases, improvements
in agricultural performance, procurement gains and strong market
pricing translated into an improved result.
Vector Logistics continued its turnaround, with an improved
performance for the current reporting period mainly driven by the
completion of the Imperial Cold Logistics (ICL) network
integration and a recovery in the food service industry where
volumes returned to almost pre-COVID-19 levels.
EPS for the year ended June 2022 was lower than HEPS largely due
to the post-tax impact of net impairments recognised, which is
excluded from the calculation of HEPS.
CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared a final
gross cash dividend (number 95) of 30.0 cents (24.0 cents net of
dividend withholding tax) for the year ended June 2022.
The dividend has been declared from income reserves.
A dividend withholding tax of 20% will be applicable to all
shareholders who are not exempt.
The issued share capital at the declaration date is 953 298 370
ordinary shares. The company’s income tax reference number is
9950019712.
The salient dates for the dividend will be as follows:
Publication of declaration data Monday, 5 September 2022
Last day of trade to receive a dividend Tuesday, 18 October 2022
Shares commence trading “ex” dividend Wednesday, 19 October 2022
Record date Friday, 21 October 2022
Payment date Monday, 24 October 2022
Share certificates may not be dematerialised or rematerialised
between Wednesday, 19 October 2022 and Friday, 21 October 2022,
both days inclusive.
The contents of this short-form announcement are the
responsibility of the board of directors of the Group.
Shareholders are advised that this short-form announcement
represents a summary of the information contained in the full
announcement and does not contain full or complete details as
published in the full announcement published on The Stock Exchange
News Service and on the RCL FOODS website,
www.rclfoods.com/financial-results-and-reports-2022/ on 5 September 2022.
With respect to the consolidated financial statements for the year
ended June 2022, the auditors, PricewaterhouseCoopers Inc., have
issued an unqualified audit opinion in terms of the International
Standards on Auditing. The auditors' unqualified audit report in
terms of International Standards on Auditing, along with their key
audit matters and the audited Annual Financial Statements is
available on the RCL FOODS website, www.rclfoods.com/financial-
results-and-reports-2022/.
Any investment decisions by investors and/or shareholders should
be based on a consideration of the full announcement as a whole
and shareholders are encouraged to review the full announcement,
which is available for viewing at
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/RCL/05092022.pdf
or on the Group’s website set out above. Copies of the full
announcement may be inspected at the Group’s registered office and
offices of its sponsor at no charge, during office hours of 08h00
to 16h30, Monday to Friday. Investors and/or shareholders may also
request copies of the full announcement by contacting the company
secretary at lauren.kelso@rclfoods.com or on 031 242 8600.
Durban
5 September 2022
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 05-09-2022 07:05:00
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